Annuity Suitability Certification Practice Exam

When the actual investment performance of a variable annuity matches the assumed interest rate, the monthly income remains consistent with the prior month. This is because variable annuities typically involve a payout structure that is determined based on projected returns or assumed interest rates during the initial calculation period. When investment performance aligns with these projections, it indicates that the expected growth is being realized, which stabilizes the income payment.

The income distribution from a variable annuity can fluctuate based on the underlying investment performance, but when performance meets expectations, it serves as a stabilizing factor. Therefore, the monthly income does not experience an increase or decrease, but rather remains steady. This reflects the nature of variable annuities, where fluctuations are more pronounced in periods of varying investment performance, rather than during periods where actual performance aligns with assumptions.